PESTEL Analysis: Pestel Analysis Of UPS

Introduction:

Due to the ever-changing external factors, organizations face superabundant barriers when running business. Organizations have to ensure that their activities and resources suit to their goals. This report is going to identify the obstacles that UPS face through PESTEL analysis.

Political:

The USA is the oldest democratic country in the world. Their federal system is national government and states. Primary political factors affecting an organization are Government regulations and rules. Being a international company, it must interact with other countries worldwide, granting them the benefits of possessing international services such as customs clearance. Some other political factors of concern are political stability, industrial

Several years ago, global economy has gone through a tough time, like financial crisis in year 2008. The economy is continuing recovering and growing. The economy of USA and other developed countries are moderately going up. It is attractive for foreign investors. The USA has found the potential markets are also emerging, such as China and India etc. As a result, they provide and pay more attention to the dimension of exports trading due to the trend of international business is increasing so that export occupies a important role for the US economy indeed. According to Davis, the Chairman and Former UPS Chief Executive Officer, “UPS was followed by a panel of global trade experts who shared insights about global trade in general, and provided perspectives about trading in Asia, Europe, and the Americas.” (2011) They found that the credit is more available than it has been in a long time; interest rates remain low; demand in emerging markets remains strong; and both corporate profits and balance sheets are strong.

The company took the expansion of the Internet to its full sake by providing electronic services to customers all over the world. With this technology, consumers can check the status of their transactions by only clicking the options on computer. UPS is able to communicate with the world through e-commerce, another innovation for business-to-business transactions. Nowadays, the youth take a huge proportion in our society and they use the high tech to give themselves convenience. For instance, the online shopping has become a prevailing trend, most of them using delivery services without going out to a place that far away from home. And the world is connected by internet, freight market help raising the efficiency of the stuff trading between suppliers and